Indemnity insurance, also called professional indemnity insurance, protects professionals from legal defense costs and damages when faced with a lawsuit or claim due to negligence, errors, or omissions in their practice. It protects against third-party damages, covers legal costs, and restores reputation if damaged.

Indemnity insurance mitigates financial risks, ensures compliance, guarantees peace of mind, and enhances credibility in the eyes of clients. When choosing the best indemnity insurance policy, professionals should consider coverage limits, exclusions and limitations, premiums, and reputation of the provider. The cost of indemnity insurance varies, and it’s vital to get value for money.